A Safe Bet on Big Banks

Ride financial sector momentum with call options that will gain value as the banks return to health.

In the past week, three major banks have declared that financial stocks are poised to outperform the broad stock market.

Deutsche Bank, Goldman Sachs and Morgan Stanley all advised clients, in reports raising their year-end stock-market targets, that financial stocks should outperform as those companies return money to investors. Expectations are high that banks will increase dividends and buy back their stock.